1st Quarter 2013 Real Estate Market Report
Sales are Up and Lack of Inventory Persists
Overall Market: Coming out of a robust real estate market in 2012, the 1st quarter of 2013 had continued momentum as all segments of the market stabilized and sales were strong. In fact, every segment of the market experienced an increase in number of sales when compared to the 1st quarter of 2012, with an overall increase of nearly 35%. As we predicted in our previous market report, inventory has remained very low in most segments of the market. This lack of inventory could limit the number of sales throughout the year and could begin to cause an increase in prices. The number of properties under contract at the end of Q1 was up nearly 60% compared to last year.
Bank-owned properties and short sales continue to be in short supply. At the end of 2012, distressed properties made up about 3% of active inventory. At the end of the 1st quarter, this number had gone down to just over 1%. Of all the sales occurring in the 1st quarter this year, only 11 of them were distressed. The shedding of this distressed inventory is great news for the overall health of the marketplace.
Single Family Market: The single family segment of the market is doing well with the number of sales up 20% compared to the same time period in 2012. Sold volume has also increased about 37%. Most sales continue to occur within the Town of Jackson, followed closely by the south of Jackson area with 12 and 8 sales respectively. The area with the most improvement (up 400%!) is the north of Jackson area which includes properties near the airport as well as Moran and Kelly. Most notable is the Moran area. While there was not a single sale in Moran in 2012, there have already been 3 sales just in the 1st quarter this year. The single family segment of the market is facing a shortage of inventory with only 180 homes currently available. That is only about 30% of the entire available inventory.
Condominium/Townhome Market: This segment of the market continues to be very active with 32 sales so far this year. This is a 60% increase over the 1st quarter of 2012. The dollar volume of sales increased dramatically as well, up nearly 55%. Contrary to the trend from 2012, the most improvement occurred in the Teton Village area which improved by 150% over the same time period last year. The Town of Jackson also saw a great increase in sales compared to Q1 in 2012 with an increase of over 60%. The condo/townhome segment of the market is experiencing the greatest shortage of inventory with only 87 units currently available. That is only about 15% of the entire available inventory. With 58 units under contract as of the end of the 1st quarter, the shortage could become more severe if new inventory is not added this spring.
Vacant Land Market: Building sites in Teton County continue to improve as well with the number of sales up about 25% over the 1st quarter of 2012. The Town of Jackson segment was the top area with 5 sales. The dollar volume of land sales reached over $16.6 million which is about a 17% increase over the same time period last year. The vacant land segment of the market is the one sector without a shortage of inventory; however, buyers are not likely to find the bargains once seen, as many sellers continue to hold firm on pricing.
In Summary: Acquiring real estate in the remarkable destination of Jackson Hole will always be desirable, but now seems to be the best opportunity for buyers and investors alike to get their foot in the door before higher prices. As inventory becomes more scarce, the Jackson Hole real estate market appears to be heading toward more growth and appreciation through 2013.
This report outlines some of the general trends found so far in 2013, however, we are more than happy to provide more detailed information geared toward specific areas and price ranges of Jackson and the surrounding areas. Please feel free to stop by our new offices at 80 West Broadway or contact us anytime for more information at:
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*Statistics quoted in this report are deemed reliable but are not guaranteed. Statistics are derived via internal audit with information from Teton County MLS and Jackson Hole Real Estate Associates LLC proprietary database.